SUGAN LIFE STYLE, CHENNAI V. ITO, NCW - 2 (1), CHENNAI

ITA 2071/CHNY/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2200 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 7 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 11-07-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Competent authority; Condonation of delay

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , C B ENCH, CHENNAI . , ! . , ! ' BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./ I.T.A.NO.2071/CHNY/2019 ( / ASSESSMENT YEAR: 2015-16) M/S. SUGAN LIFE STYLE, 18/29, VAIDYARAMAN STREET, T.NAGAR, CHENNAI-600 017. VS THE INCOME TAX OFFICER NON-CORPORATE WARD-2(1) CHENNAI. PAN:ACPFS 5098H ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : NONE /RESPONDENT BY : MR. G. JOHNSON, ADDL CIT /DATE OF HEARING : 09.03.2021 /DATE OF PRONOUNCEMENT : 09.03.2021 / O R D E R PER G.MANJUNATHA, ACCOUNTANT MEMBER: THIS APPEAL FILED BY ASSESSEE IS DIRECTED AGAINST ORDER OF LEARNED CIT(A)-2, CHENNAI DATED 03.05.2019 AND PER TAINS TO ASSESSMENT YEAR 2015-16. 2. AT THE TIME OF HEARING, NONE APPEARED FOR THE AS SESSEE. WE HAVE HEARD THE LD. DR AND ALSO PERUSED THE MATER IAL AVAILABLE ON RECORD. THE ASSESSEE VIDE ITS LETTE R DATED 19.02.2021 WANTED TO UTILIZE THE DIRECT TAXES VI VAD SE VISHWAS SCHEME, 2020 TO SETTLE PENDING DISPUTE RE LATING TO DIRECT TAXES AND IN THIS REGARD FILED FORM NO 1 AN D 2 AND AWAITING FORM NO. 3 FROM THE DESIGNATED AUTHORITY. IN SOME 2 ITA NO.2071/CHNY/2019 CASES, THE ASSESSEES HAVE RECEIVED FORM NO. 3 FROM THE DESIGNATED AUTHORITY AND IN SOME CASES, THE ASSESSE E HAVE FILED LETTER AND EXPRESSED THEIR WILLINGNESS TO FIL E FORM NO. 1 AND 2 BEFORE THE DESIGNATED AUTHORITY. 3. THE BENCH HAS CONSIDERED THE MATERIALS AVAILABL E ON RECORD AND AFTER HEARING LEARNED DR, WE FOUND THAT THE GOVERNMENT OF INDIA HAS ANNOUNCED IN THE BUDGET, 2020, A DIRECT TAXES VIVAD SE VISHWAS SCHEME, 2020 TO SE TTLE PENDING DISPUTE RELATING TO DIRECT TAXES AT VARI OUS APPELLATE FORUMS INCLUDING THE FIRST APPELLATE AUTHORITY, TRIBUNAL, HIGH COURT AND SUPREME COURT. IN THIS REGARD, THE SCHE ME HAS BEEN NOTIFIED ON 17 TH MARCH, 2020 AND BECAME DIRECT TAXES VIVAD SE VISHWAS ACT, 2020. AS PER THE SAID SCHEM E, ASSESSEES ARE ALLOWED TO SETTLE DIRECT TAX DISPUTE IN A MANNER AND PROCEDURE PRESCRIBED THEREIN BY FILING NECESSAR Y DECLARATION AND UNDERTAKING. THE SCHEME HAS ALSO SP ECIFIED THE AMOUNT OF TAXES, INTEREST, AND PENALTY, IF ANY PAYABLE UNDER THE ACT. IF AN ASSESSEE FILED A DECLARATION AND PAY SPECIFIED TAXES AS PER THE SCHEME AND WITHDRAW THE APPEA L PENDING BEFORE THE APPELLATE AUTHORITIES, THE DESIGNATED AUTHORITY SHALL 3 ITA NO.2071/CHNY/2019 PASS AN ORDER IN FORM 5 CONFIRMING PAYMENT MADE U NDER THE SCHEME AND GRANT IMMUNITY FROM PENALTY AND PROSECU TION. 4. IN THE PRESENT APPEALS, SOME ASSESSEES HAVE FIL ED DECLARATION IN FORM NO.1 ALONG WITH UNDERTAKING WAI VING RIGHTS FOR ANY REMEDY IN FORM NO. 2 TO THE DESIGNATED AUTH ORITY AND HAS ALSO RECEIVED FORM 3. IN SOME CASES, FORM NO 1 AND 2 HAS BEEN FILED AND AWAITING FORM NO. 3 FROM THE DES IGNATED AUTHORITY AND IN SOME CASES, THE ASSESSEES HAVE EX PRESSED THEIR WILLINGNESS TO FILE FORM NO. 1 AND 2 AND SETT LE THEIR DISPUTE UNDER THE SCHEME. THEREFORE, ONCE THE ASSESSEES IN TEND TO FILE A DECLARATION IN FORM NO.1 ALONG WITH UNDERTAKING A ND EXPRESSED THEIR WILLINGNESS TO SETTLE PENDING DISPU TES REGARDING DIRECT TAXES, THEN THERE IS NO POINT IN KEEPING APP EAL FILED BY THE ASSESSEES. WE, FURTHER NOTED THAT RECENTLY THE H ONBLE JURISDICTIONAL HIGH COURT OF MADRAS HAS CONSIDERED AN IDENTICAL APPLICATION FILED BY AN ASSESSEE IN THE CASE O F M/S. NANNUSAMY MOHAN (HUF) VS. ACIT IN T.C.A NO.372 OF 2 020 FOR AVAILING THE BENEFIT OF VIVAD SE VISHWAS SCH EME, 2020, WHERE THE HONBLE HIGH COURT HAS DISMISSED THE AP PEAL FILED BY THE PETITIONER AS WITHDRAWN, BUT ALLOWED LIBERTY TO THE 4 ITA NO.2071/CHNY/2019 ASSESSEE TO RESTORE THE APPEAL IN THE EVENT THE D ESIGNATED AUTHORITY FOR ANY REASON REJECT APPLICATION FILED BY THE ASSESSEE UNDER SECTION 4 OF THE ACT. THE RELEVANT PORTIONS O F THE OBSERVATIONS OF THE HONBLE HIGH COURT OF MADRAS VI DE ORDER DATED 16.10.2020 ARE EXTRACTED AS UNDER:- 2. WE HAVE HEARD MR.M.P.SENTHIL KUMAR, LEARNED C OUNSEL APPEARING FOR THE APPELLANT/ASSESSEE AND MR.T.R. SENTHIL KUMAR, LEARNED SENIOR STANDING COUNSEL AND MS. K.G.USHA RANI, LEARNED COUNSEL FOR THE RESPONDENT/REVENUE. 3. THE LEARNED COUNSEL FOR THE APPELLANT / ASSESSEE , ON INSTRUCTIONS, SUBMITTED THAT THE APPELLANT / ASSESS EE INTENDS TO AVAIL THE BENEFIT OF VIVAD SE VISHWAS SCHEME ( VVS SCHEME' FOR BREVITY) AND IN THIS REGARD, THE ASSESSEE IS TA KING STEPS TO FILE THE APPLICATION / DECLARATION IN FORM NO. 1. 4. IT MAY NOT BE NECESSARY FOR THIS COURT TO DECIDE THE SUBSTANTIAL QUESTIONS OF LAW FRAMED FOR CONSIDERATI ON ON ACCOUNT OF CERTAIN SUBSEQUENT DEVELOPMENTS. THE GOV ERNMENT OF INDIA ENACTED THE DIRECT TAX VIVAD SE VISHWAS AC T, 2020 (ACT 3 OF 2020) TO PROVIDE FOR RESOLUTION OF DISPUTED TA X AND FOR MATTERS CONNECTED THEREWITH OR INCIDENTAL THERETO. THE ACT OF THE PARLIAMENT RECEIVED THE ASSENT OF THE PRESIDENT ON 17TH MARCH 2020 AND PUBLISHED IN THE GAZETTE OF INDIA ON 17TH MARCH 2020. 5. IN TERMS OF THE SAID ACT, THE ASSESSEE HAS BEEN GIVEN AN OPTION TO PUT AN END TO THE TAX DISPUTES, WHICH MAY BE PENDING AT DIFFERENT LEVELS EITHER BEFORE THE FIRST APPELLATE AUTHORITY OR BEFORE THE TRIBUNAL OR BEFORE THE HIGH COURT OR BEF ORE THE HON'BLE SUPREME COURT OF INDIA. UNDER SECTION 2(J) 'DISPUTED TAX' HAS BEEN DEFINED. IN TERMS OF SECTION 3, WHERE A DECLARANT MEANS A PERSON, WHO FILES A DECLARATION UNDER SECTI ON 4 ON OR BEFORE THE LAST DATE FILES A DECLARATION TO THE DES IGNATED AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF SECTION 4 IN R ESPECT OF TAX ARREARS, THEN, NOTWITHSTANDING ANYTHING CONTAINED I N THE INCOME TAX ACT OR ANY OTHER LAW FOR THE TIME BEING IN FORC E, THE AMOUNT PAYABLE BY THE DECLARANT SHALL BE DETERMINED IN TER MS OF SECTION 3(A-C) THEREUNDER. 5 ITA NO.2071/CHNY/2019 6. THE FIRST PROVISO TO SECTION 3 STATES THAT IN C ASE WHERE AN APPEAL OR WRIT PETITION OR SPECIAL LEAVE PETITION I S FILED BY THE INCOME TAX AUTHORITY ON ANY ISSUE BEFORE THE APPELL ATE FORUM, THE AMOUNT PAYABLE SHALL BE ONE-HALF OF THE AMOUNT IN THE TABLE STIPULATED IN SECTION 3 CALCULATED ON SUCH ISSUE, I N SUCH A MANNER AS MAY BE PRESCRIBED. THE SECOND PROVISO DEA LS WITH THE CASES, WHERE THE MATTER IS BEFORE THE COMMISSIONER (APPEALS) OR BEFORE THE DISPUTE RESOLUTION PANEL. THE THIRD PROV ISO DEALS WITH CASES, WHERE THE ISSUE IS PENDING BEFORE THE INCOME TAX APPELLATE TRIBUNAL. THE FILING OF THE DECLARATION IS AS PER SECTION 4 OF THE ACT AND THE PARTICULARS TO BE FURNISHED AR E ALSO MENTIONED IN THE SUB SECTIONS OF SECTION 4. SECTION 5 OF THE ACT DEALS WITH THE TIME AND MANNER OF THE PAYMENT AND S ECTION 6 DEALS WITH IMMUNITY FROM INITIATION OF PROCEEDINGS IN RESPECT OF OFFENCE AND IMPOSITION OF PENALTY IN CERTAIN CASES. SECTION 9 OF THE ACT DEALS WITH CASES, WHERE THE ACT 3 OF 2020 W ILL NOT BE APPLICABLE. 7. AS OBSERVED, THE ASSESSEE IS GIVEN LIBERTY TO RE STORE THIS APPEAL IN THE EVENT THE ULTIMATE DECISION TO BE TAK EN ON THE DECLARATION TO BE FILED BY THE ASSESSEE UNDER SECTI ON 4 OF THE SAID ACT IS NOT IN FAVOUR OF THE ASSESSEE. IF SUCH A PRAYER IS MADE, THE REGISTRY SHALL ENTERTAIN THE PRAYER WITHO UT INSISTING UPON ANY APPLICATION TO BE FILED FOR CONDONATION OF DELAY IN RESTORATION OF THE APPEAL AND ON SUCH REQUEST MA DE BY THE ASSESSEE BY FILING A MISCELLANEOUS PETITION FOR RES TORATION, THE REGISTRY SHALL PLACE SUCH PETITION BEFORE THE DIVIS ION BENCH FOR ORDERS. 8. IN THE LIGHT OF THE ABOVE, WE DIRECT THE APPE LLANT / ASSESSEE TO FILE THE FORM NO.1 ON OR BEFORE 20.11.2020 AND T HE COMPETENT AUTHORITY SHALL PROCESS THE APPLICATION / DECLARATI ON IN ACCORDANCE WITH THE ACT AND PASS APPROPRIATE ORDERS AS EXPEDIT IOUSLY AS POSSIBLE PREFERABLY WITHIN A PERIOD OF SIX (6) WEEK S FROM THE DATE ON WHICH THE DECLARATION IS FILED IN THE PROPER FOR M. 5. IN THE LIGHT OF THE ABOVE DECISION OF THE HONBL E HIGH COURT OF MADRAS, AND BY TAKING NOTE OF THE FACT T HAT SOME ASSESSEES HAVE ALREADY FILED DECLARATION IN FOR M NO.1 ALONG WITH FORM NO.2 TO THE DESIGNATED AUTHORITY AND RECEIVED FORM 3 AND SOME ASSESSEES HAD ALREADY F ILED 6 ITA NO.2071/CHNY/2019 FORM NO. 1 & 2 AND AWAITING FORM NO. 3 FROM THE DES IGNATED AUTHORITY AND ALSO THE FACT THAT REMAINING ASSESSEE S ARE WILLING TO FILE FORM NO. 1 AND 2 WITHIN THE DUE DAT E PRESCRIBED FOR THIS PURPOSE, WE DISMISS THE APPEALS FILED BY T HE ASSESSEES AS WITHDRAWN. HOWEVER, A LIBERTY IS GI VEN TO THE ASSESSEES TO RESTORE THE APPEAL, IN THE EVENT O F THE DESIGNATED AUTHORITY, FOR ANY REASON REJECT THE AP PLICATION FILED BY THE ASSESSEE UNDER SECTION 4 OF THE SAID ACT. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS D ISMISSED AS WITHDRAWN. ORDER PRONOUNCED IN THE OPEN COURT ON 9 TH MARCH, 2021 SD/- SD/- ( . ) ( . ) (DUVVURU RL REDDY) (G.MANJUNATHA ) ! $ / JUDICIAL MEMBER $ / ACCOUNTANT MEMBER ! /CHENNAI, ' /DATED 9 TH MARCH, 2021 DS )* +* /COPY TO: 1. APPELLANT 2. RESPONDENT 3. , () /CIT(A) 4. , /CIT 5. * 1 /DR 6. /GF .